International Hotel Investments plc - Interim Directors’ Statement

On 12 May, International Hotel Investments plc published its Interim Directors’ Statement updating the market on its performance during the first four months of 2014.

During the period under review, the various properties returned mixed performances reflecting the political and economic conditions prevailing in the respective locations. The gross operating profit (GOP) of the 50% owned Corinthia Hotel London increased by 60% over the corresponding period in 2013 as this flagship property continued to improve its market penetration. Improved performances were also registered by the two hotels in Malta as well as the hotel in Prague. Meanwhile, the Corinthia Hotel Budapest maintained the same performance registered during the first four months of 2013. On the other hand, the hotels in Tripoli and St. Petersburg reported a drop in their respective performances reflecting the instability and uncertainties prevailing in both countries. However, the rental income from commercial centres also situated in Russia and Libya remained stable during the period under review.

CHI Ltd, the fully-owned hotel management subsidiary, improved its performance over the corresponding period in 2013.

Looking ahead, the Directors of IHI explained that they expect overall GOP for 2014 to show an improvement over to corresponding figure registered in 2013. However, the fluid situation in Libya and in the Russian Federation, which has impacted business activities is being closely monitored.

The announcement also reiterated that during the first few months of 2014, IHI concluded the sale of 11 out of the 12 apartments in London with the remaining apartment, the Penthouse, being retained. Subsequently, the Directors had also approved and announced a net interim dividend of €0.03 per share which will be paid on 16 May.